Energy Tax Credits - For Energy Efficient Home Improvements:

When does this go into effect?- Unless stated otherwise in the bill, today is the effective date. Specifically regarding the residential efficiency credits, the expanded $1,500 credit is retroactive to the start of 2009. Products that qualified for the existing $500 credit will still qualify for the $1,500 credit if installed prior to today. Equipment installed today through 12/31/2010 must meet the minimum requirements.

Is it a $1,500 credit in both 2009 and 2010? - No. $1,500 is the total credit available to primary residence households for 2009 and 2010.

What if a customer claimed the $500 efficiency credit previously in 2006, 2007, or 2009? - It does not affect this credit. Those same customers are still eligible for the full $1,500 credit for qualified improvements made in 2009 and 2010.

What about envelope improvements? - Upgrades to doors and windows must now have U-factors or SHGC of .30 or lower to qualify and insulation must meet 2009 IECC requirements. These improvements count towards the $1,500 cap in 2009 and 2010. The previous thresholds qualify for the credit if installed between 1/1/09 and 2/16/09.

What about advanced circulating fans now? - 30% of the costs associated with the installation of fans that use less than 2% of the total furnace energy consumption qualify.

What about solar and geothermal systems? - 30% of the total installation costs of solar hot water, solar electricity, wind generation, and geothermal heatpumps can now be recovered as a tax credit without any dollar limitations.

What about replacement jobs in which a 95% AFUE furnace but only a 13 SEER a/c is installed? - 30% of the final installation costs up to $1,500 associated specifically with the 95% AFUE furnace will qualify for the credit. Should the installation costs associated with the furnace not reach $5,000, 30% of the installation cost can still be claimed and the difference between that amount and the $1,500 cap can be applied to any other qualifying improvements.

Do these improvements apply to new home construction as well? - No. On-site renewables generation such as solar and wind qualify for new construction credits, but not the envelope or HVAC credits addressed above.

Provisions of the Economic Stimulus Bill and the $8,000 tax credit for first time homebuyers:

Time frame to buy? - By December 1, 2009

First-time home buyer? - A buyer who has not owned a home for three years.

Married first-time buyer? - Both buyers have not owned a home for three years.

Claim tax credit? - Claim the tax credit on your federal income tax return.

Other form or forms? - No other form except your federal income tax return.

Credit limits? - Single $75,000, Married $150,000.

Building a custom home? - You qualify, but you have to occupy the home by Dec. 1, 2009.

Buying a new home? - You qualify, but the settlement day has to be by Dec. 1, 2009.

Tax credit pay back? - You are not required to repay except for certain conditions.

Access the tax credit now? - Change your withholding numbers.

Mortgage Revenue Bonds? - Allow tax credit home buyers to participate.

Loan credit? - State housing finance agencies to help buyers at closing by advancing the credit amount as a loan.